MIRA INFORM REPORT

 

 

Report Date :

14.09.2007

 

IDENTIFICATION DETAILS

 

Name :

P.T. AMES INDAH INTERNATIONAL

 

 

Registered Office :

Menara Batavia, 14th Floor, Jalan K.H. Mas Mansyur Kav. 126, Jakarta Pusat, 10220

 

 

Country :

Indonesia

 

 

Date of Incorporation :

2 February 1977

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Export Import of Steel and Iron, Chemical, Alumina Hydrate and Garment Products

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 260,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Name of Company

 

P.T. AMES INDAH INTERNATIONAL

 

 

Address

 

Head Office

Menara BATAVIA, 14th Floor

Jalan K.H. Mas Mansyur Kav. 126

Jakarta Pusat, 10220

Indonesia

Phone               - (62-21) 572 3753 (Hunting)

Fax.                  - (62-21) 572 3757

E-mail               - ptames@cbn.net.id

Building Area     - 28 storey

Building Space  - 200 sq. meters

Region              - Commercial Building

Status               - Rent

 

 

Date of Incorporation

 

2 February 1977

 

                                  

Legal Form

 

P.T. (Perseroan Terbatas) or Limited Liability Company

 

 

Company Reg. No.

 

The Ministry of Justice and Human Rights

No. C-01377 HT.01.04.TH.2003

Dated 22 January 2003

 

 

Company Status 

 

National Private Company

 

           

Permit by the Government Department

 

The Directorate General of Tax

NPWP No. 1.108.137.9-025

 

 

Related Company

 

The SELAMA JAYA Group Members  

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                             : Rp. 1,000,000,000.-

Issued Capital                                   : Rp.    300,000,000.-

Paid up Capital                                  : Rp.    300,000,000.-

 

Shareholders/Owners :

 

a. Mr. Viviek Hariram Mahtani                                     - Rp. 100,000,000.-

    Address : Jl. Arjuna No. 32

                    Tanjung Duren, Jakarta Barat

                    Indonesia

b. Mr. Harbinar Singh                                                  - Rp. 100,000,000.-

   Address : Jl. Gunung Sahari VII C/4 A

                   Jakarta Pusat

                   Indonesia

c. Mr. Suresh Kishinchand Chandiramani                   - Rp. 100,000,000.-

   Address : Jl. Merpati Block A-20, Kemayoran

                   Jakarta Pusat

                   Indonesia

 

                  

BUSINESS ACTIVITIES

                             

Lines of Business:       

Export Import of Steel and Iron, Chemical, Alumina Hydrate and Garment Products

 

 

Production Capacity

 

None

 

 

Total Investment

 

None

 

 

Started Operation

 

1978

 

 

Brand Name

 

None

 

 

Technical Assistance

 

None

 

 

Number of Employee

 

13 persons       

 

 

Marketing Area

 

Export    - 50%

Local      - 50%

 

 

Main Customer

 

Buyers in Middle East and local distributors

 

 

Market Situation

 

Very Competitive

 

 

Main Competitors

 

a. P.T. NAVSHANTI INDONESIA

b. P.T. NAR STAINLESS STEEL

c. P.T. ESSAR INDONESIA

 

 

Business Trend

 

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker  :

STANDARD CHARTERED Bank

Wisma Standard Chartered Bank

Jalan Basuki Rachmat No. 83-85

Surabaya, East Java

Indonesia

 

Auditor :

Internal Auditor

           

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2004 – Rp. 18.0 billion

2005 – Rp. 19.0 billion

2006 – Rp. 20.0 billion

 

Net Profit (estimated) :

2004 – Rp. 1.1 billion

2005 – Rp. 1.2 billion

2006 – Rp. 1.4 billion

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director          - Mr. Harbinder Singh

Director                         - Mr. Viviek Hariram Mahtani 

           

Board of Commissioners :

Commissioner               - Mr. Suresh Kishinchand Chandiramani

                                                           

Signatories :

President Director (Mr. ) or the Director (Mr. Harbinder Singh) or the Director (Mr. Viviek Hariram Mahtani) which must be approved by Supervisory Board.

 

 

CAPABILITIES

 

Management Capability :

 

Good

 

 

Business Morality

 

Good

 

 

Credit Risk

 

Average

 

 

Credit Recommendation

 

Credit should be proceeded with monitor

 

 

Proposed Credit Limit 

 

Small amount – periodical review

 

 

Maximum Credit Limit

 

US$ 260,000 on 90 days D/A

 

 

OVERALL PERFOMANCE

 

P.T. AMES INDAH INTERNATIONAL (P.T. AII) was established in Surabaya, East Java in February 1977 with the authorized capital of Rp. 50,000,000 of which Rp. 25,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Harriram Mangharam Mahtani and Mr. Harbinder Singh, both are Indonesian businessmen of Indian extraction. In February 1979, into the company entered a new shareholder Mr. Saso Sugiarso, an Indonesian businessman of Indian extraction. The notary deed has been changed and in October 2002, the authorized capital was increased to Rp. 1,000,000,000.- issued capital of Rp. 300,000,000.- entirely paid up. Mr. Harriram Mangharam Mahtani is also the founder, prime mover and the majority business stake owner of the SELAMA JAYA, a small sized company group in the country. The deed of amendment was made by Mrs. Lindasari Bachroem, SH, a public notary in Surabaya under Company Registration Number C-01377 HT.01.04.TH. 2003, dated January 22, 2003.

 

P.T. AII has been in commercial operation since 1978 dealing with export-import services, general merchant and trading of steel and iron products, garment, chemical and alumina hydrate. An exporting staff of the company said that P.T. AII exports garment products to Middle East countries comprising shirts, trousers, jackets, T-Shirts and others being bought from various garment manufacturing industries in Jakarta, Bandung, West Java and surroundings. Meanwhile the product like steel and iron is imported from Europe, China, India and others. The whole steel product supplied to various trading of steel in Surabaya, Jakarta and surroundings. Besides, P.T. AII also imports chemical products from India being sold to various manufacturing industries in Jakarta, Bandung and surroundings. We observe that P.T. AII is classified as a medium sized company of its kind in the country of which the operation had been running smoothly and growing steadily in the last four years.

 

Generally outlook, the steel industry in Indonesia has kept on declining since end 1997 under the impact of economic crisis battering Indonesia. The crisis caused the demand of steel products to drop because property sector, steel construction sector, automotive and other sectors using steel in the country have been in sluggish. In next five years demand for steel industry will rise 5% annually. The economic growth has started increasing from 4.37% in 2002 to 4.87% in 2003 went up to 5.13% in 2004 and 5.78% in 2005. Several Indonesian economic indicators in 2000 to 2005 in details are as shown on table below :

 

The Growth of Indonesian Several Economic Indicators 2001-2005

 

No.

Indicator

2001

2002

2003

2004

2005

1.

Economic Growth (%)

3.83

4.37

4.87

5.13

5.78

2.

Inflation (%)

12.55

10.03

5.06

6.40

17.17

3.

Gross growth based on constant price 2000 (billion Rp)

1,442,984.5

1,506,124.4

1,579,558.9

1,660,578.8

1,753,903.0

4.

Foreign Trade Balance (million US$)

25,248.5

23,104.6

24,142.3

25,614.6

27.202.7

5.

Export (million US$)

56,321

57,159

61,058

71,585

83,314

6.

Import (million US$)

30,289

31,289

32,551

46,525

58,329

        Source :  Central Bureau of Statistic

 

Until this time P.T. AII has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2004 amounted to Rp. 18.0 billion increased to Rp. 19.0 billion in 2005 to Rp. 20.0 billion in 2006. It is projected that total sales turnover of the company will be higher by at least 6% in 2007. We estimated the company has an estimated total net worth at Rp. 1.4 billion. The financial condition of the company is backed up by financially strong and sound businessmen behind it. So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.  

                                               

The management of P.T. AII is headed by Mr. Harbinder Singh (59), a professional manager of Indian origins who experienced for more than 25 years in the field of export import, general merchant and trading of iron and steel products, garment, chemical and alumina hydrate. We observed that management’s reputation in said business is fairly good. The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors. So far, we have never heard that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. PT. AMES INDAH INTERNATIONAL is fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

                                                                                                                      

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions